ArcBest Corp (ARCB)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 4,183,830 4,422,890 5,336,500 3,996,140 2,942,940
Property, plant and equipment US$ in thousands 1,066,050 914,824 800,170 695,921 678,690
Fixed asset turnover 3.92 4.83 6.67 5.74 4.34

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,183,830K ÷ $1,066,050K
= 3.92

The fixed asset turnover ratio for ArcBest Corp has shown a generally positive trend over the years, increasing from 4.34 in December 31, 2020 to 5.74 in December 31, 2021, further rising to 6.67 by December 31, 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting efficient utilization of its fixed assets to generate sales.

However, there was a slight decline in the fixed asset turnover to 4.83 by December 31, 2023, and a more significant decrease to 3.92 by December 31, 2024. This suggests a potential decrease in sales generated relative to the level of fixed assets during those years.

Overall, while the company initially showed improved efficiency in asset utilization, the decreasing trend in the later years may warrant a closer examination of the company's fixed asset management practices to ensure optimal utilization for revenue generation.